Michael Schrum: Yes.
Timur Braziler: Great. Thank you.
Michael Schrum: Sorry, Tim. I have to correct myself. So, sorry, that Cayman facility is in the region of 150. I was actually thinking, I was thinking it’ll be tenure when I said kind of mid-teens, so that’s actually tenure of it. But it’s in the region of 150.
Timur Braziler: Okay. That’s 150 million commitment. And that’s fully drawn down, or is that only a part of that is…
Michael Schrum: Yes.
Timur Braziler: Okay, great. Thanks for the color. I appreciate it.
Operator: Our next question comes from David Feaster with Raymond James.
David Feaster: I would just want to maybe get a quick economic update from you all. We’ve got the restrictions now lifted in the island economies, great to see the uptick in the banking fees. Obviously, there’s some seasonal benefits there, but just curious, the pulse of your local economies from your perspective. How inflation and higher rates are impacting the local businesses there? And then just any expectations for that banking fee line item as well?
Michael Collins: Yes. Thanks for the questions. I mean, I think all the economies in our jurisdictions are actually doing quite well. It is seasonal in a sense. So obviously, the fourth quarter came in sort of late November, Thanksgiving through December is actually really busy. That’s their high season. But on the other hand, Bermuda is the low season from a tourism perspective. So, it balances out, Bermuda’s holding its own. Reinsurance industry is doing well. We’ve sort of — have a whole new type of reinsurance company over the last 5 to 10 years, life reinsurers. So, as property catastrophe is actually waned a bit, Bermuda’s reinvented itself again. So, reinsurance and international business is doing well. We do have a bit of a problem in terms of flight capacity, which Cayman doesn’t have.
Cayman has tons of flights. Bermuda today has fewer flights, and we’re working with the airlines to try to get more capacity. But economy’s doing reasonably well. Cayman is doing very well, so expanding population growth, lots of new people sort of setting up there, and the Channel Islands is doing quite well as well. So all the economies are doing well, everything’s open. Bermuda, I think, will have a good summer season. So, so far so good. In terms of cost-of-living Bermuda, Cayman have always been very expensive. So, I think inflation isn’t any surprise here. We’ve talked in the past, we haven’t seen any credit stress at this point, but we’re keeping an eye on it as rates go up. But so far there’s enough indigenous wealth and saved wealth in Bermuda in particular that we haven’t seen any real credit stress.
So, we’ll keep an eye on it, but we’re quite positive about the way all four economies are looking on the banking side.
David Feaster: Okay. That’s helpful. And maybe to the point on credit, it was great to see the decrease in non-accruals. Obviously, we’re not seeing anything significant. Could you maybe just talk about what drove that decline? And then just curious on your mortgage clients, and how they’re holding up with higher rates on those floating rate mortgages and your approach to working with those borrowers that may be struggling more, and whether there’s just anything on the credit front that you’re watching or maybe concerned about at this point. Sounds like there might not be much, but just wanted to but just wanted to touch on that.
